Phnom Penh (VNA) – The World Bank East Asia and Pacific Economic Update October2020, released on September 29, forecast the Cambodian economy will contract 2percent this year.
Cambodia’s unfavourable growth outlookalongside disruptions to jobs and lower household incomes means poverty islikely to increase, it said.
The bank added that “significant uncertainty” remains forCambodia’s economic growth outlook with downside risks including a localCOVID-19 outbreak, deeper and prolonged decline in tourist arrivals as well asincreased global trade tensions and protectionism.
“Cambodia’s economy and its key growth drivers – namely construction, tourismand merchandise exports – continue to be severely affected by the global crisisunleashed by the COVID-19 pandemic,” the World Bank said.
On a positive note, the WB said Cambodia’s domestic demand hadbeen gradually returning, as well as having good prospects with currentbilateral trade negotiations, forecasting economic growth of 4.3 percent in2021 and 5.2 percent in 2022.
Last week, the Asian Development Bank (ADB)revised its 2020 growth forecast for Cambodia, with a 4.0 percent contractionfor the country’s gross domestic product this year, compared to its June projectionof a 5.5 percent decrease.
The Asian DevelopmentOutlook (ADO) 2020 Update also expected Cambodia’s economicgrowth to rebound to 5.9 percent in 2021 but stressed that thisprediction is uncertain./.
Cambodia’s unfavourable growth outlookalongside disruptions to jobs and lower household incomes means poverty islikely to increase, it said.
The bank added that “significant uncertainty” remains forCambodia’s economic growth outlook with downside risks including a localCOVID-19 outbreak, deeper and prolonged decline in tourist arrivals as well asincreased global trade tensions and protectionism.
“Cambodia’s economy and its key growth drivers – namely construction, tourismand merchandise exports – continue to be severely affected by the global crisisunleashed by the COVID-19 pandemic,” the World Bank said.
On a positive note, the WB said Cambodia’s domestic demand hadbeen gradually returning, as well as having good prospects with currentbilateral trade negotiations, forecasting economic growth of 4.3 percent in2021 and 5.2 percent in 2022.
Last week, the Asian Development Bank (ADB)revised its 2020 growth forecast for Cambodia, with a 4.0 percent contractionfor the country’s gross domestic product this year, compared to its June projectionof a 5.5 percent decrease.
The Asian DevelopmentOutlook (ADO) 2020 Update also expected Cambodia’s economicgrowth to rebound to 5.9 percent in 2021 but stressed that thisprediction is uncertain./.
VNA
